If Dell Computer Company could produce more computers at lower long-run average cost by increasing the quantity of all the inputs it uses, Dell definitely would experience
A) decreasing marginal returns.
B) diseconomies of scale.
C) increasing marginal returns.
D) economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the quantity of all inputs leads to a lower long-run average cost, allowing the company to produce more efficiently.

If Dell Computer Company Could Produce More Computers at Lower